Australia – Buying or Importing a Car

How do I buy a new car in Australia as a foreigner?

The straightforward answer is that overseas nationals are permitted to purchase vehicles in Australia without holding permanent residency or citizenship. The experience at a dealership closely resembles what any local buyer would encounter — you choose a vehicle, negotiate on price, and arrange payment — though there are several additional considerations for those who have only recently arrived in the country.

While there is no citizenship or residency condition attached to buying a car, the practical steps involved in registering and insuring a vehicle are significantly smoother when you are living in Australia lawfully. You must have a fixed address in the state or territory where you intend to register the vehicle, which means you will be required to provide evidence of where you reside. A rental agreement, recent utility bill, or bank statement will typically serve as adequate proof of address.

One of the most critical documents required when buying a vehicle — whether new or used — is proof of identity. A combination of government-issued documents such as a passport, birth certificate, or licence will be needed to verify your identity, date of birth, residential address, and citizenship status. Should any of your documents not be in English, you will be required to obtain a certified translation.

Where documents are issued in a language other than English, Australian authorities require a translation by a NAATI-certified professional. Standard digital translation services are not accepted — only translations produced by NAATI-certified practitioners carry legal recognition with state and territory road and transport authorities.

Paying outright is likely to be the most accessible route for new arrivals, as financing for non-residents can be difficult to secure and often involves strict eligibility criteria. That said, options do exist for those seeking finance, including personal loans from banks or car dealers, and it pays to compare interest rates and repayment conditions before committing. Lenders will generally look for evidence of regular income and an active local bank account. Expats who have not yet built up an Australian credit history may find it worth exploring finance through an overseas bank with which they already have a relationship. A “novated lease” is another avenue worth considering: many employers offer this arrangement to their staff, which involves a three-way agreement between the employee, the employer, and a leasing company, enabling the employee to cover the cost of running a car from pre-tax earnings.

It is always advisable to confirm exact documentation requirements with the relevant state or territory transport authority before visiting a dealership, since requirements can differ. Key authorities include Transport for NSW, VicRoads, and the Department of Transport and Main Roads (Queensland).

How do I buy a used car in Australia?

Purchasing a second-hand vehicle is generally far more economical than buying new. The used car market in Australia operates largely through private sales conducted via online platforms and through dealerships — which are often referred to locally as “car yards.” Popular listing platforms include Carsales, Gumtree, and Facebook Marketplace.

Before going ahead with any private purchase, it is essential to conduct a formal check on the vehicle’s history. The national register for this purpose is the Personal Property Securities Register (PPSR), administered by the Australian Financial Security Authority (AFSA). When evaluating a used vehicle, check its registration expiry date, CTP insurance status, recent odometer readings, and whether any outstanding financial interests are registered against it. A PPSR search attracts a small fee (refer to the PPSR website for the current amount) and will disclose whether the car carries outstanding finance, has been declared a write-off, or is subject to any other security interests — comparable to an HPI check in other countries.

At the time of sale, a private seller will ordinarily hand over a signed registration transfer form (the name and format of which differs between states), the certificate of registration, and any roadworthiness certificate required in that state. It is important to confirm that the vehicle is currently registered and in a condition fit for the road, as driving an unregistered or unroadworthy vehicle can result in fines. Always ensure the seller provides you with registration and Compulsory Third Party (CTP) insurance details at the point of purchase.

After completing the purchase, you must formally transfer the registration into your name through your state or territory transport authority. This can be done in person at a vehicle registration office or, in many cases, online. You will typically need to present proof of purchase, identity documents, and evidence of your local residential address. Time limits for completing the transfer vary between states — check with your local transport authority, since failing to transfer within the prescribed window can leave the previous owner legally responsible for the vehicle in the interim.

Can I import a vehicle into Australia, and how does the process work?

Bringing a vehicle into Australia involves considerably more than organising a shipping container — it requires formal legal clearance through a Vehicle Import Approval (VIA). Without a valid VIA in place, your vehicle will be held by the Australian Border Force, potentially incurring mounting storage charges, logistical complications, and even the prospect of the vehicle being returned to its country of origin.

A Vehicle Import Approval (VIA) is an official permit required to lawfully bring any road vehicle into Australia. It is issued by the Department of Infrastructure, Transport, Regional Development, Communications and the Arts under the Road Vehicle Standards Act (RVSA) 2018.

Australia drives on the left-hand side of the road, and the overwhelming majority of vehicles in use are right-hand drive. Vehicles less than 25 years old must appear on the Special Enthusiast Vehicle Scheme (SEVS) register in order to be eligible for import. By contrast, vehicles aged 25 years or more are subject to fewer restrictions, including the allowance of left-hand drive models in New South Wales.

Australia operates several different vehicle import schemes, each designed for particular circumstances and vehicle types. One such option is the Personal Imports Scheme: if you have personally owned and regularly used a vehicle overseas for a minimum of 12 months, this scheme permits you to bring it to Australia when you relocate. Documentary evidence of the applicant’s move to Australia is required, and under this scheme only one vehicle may be imported within any five-year period.

The Specialist and Enthusiast Vehicle Scheme (SEVS) applies to vehicles that possess specialist appeal or are not otherwise available on the Australian market. To qualify, a vehicle must demonstrate meaningful differences from models sold locally. Vehicles approved under SEVS must subsequently be brought into compliance with Australian Design Rules (ADRs) by a Registered Automotive Workshop (RAW).

It is an offence to import, sell, or present new or used imported road vehicles to the Australian market for the first time unless they meet the Australian Design Rules. Australia maintains strict vehicle safety and emissions standards, and imported vehicles must undergo compliance work to satisfy these requirements. Depending on the age and origin of the vehicle, this may include alterations to lighting systems, seatbelts, or emissions equipment.

Australia also introduced a New Vehicle Efficiency Standard (NVES) in 2024. The Australian Federal Parliament passed the New Vehicle Efficiency Standard Bill 2024 on 16 May 2024, and it became law commencing 1 January 2025. From 1 July 2025, people registering newly imported vehicles in Australia are required to comply with caps on the vehicle’s emissions (CO₂ kg/year). This is a significant development for those importing higher-emission vehicles and warrants close attention.

The complete step-by-step import process is as follows:

1. Determine your import pathway. Establish whether your vehicle qualifies under the Personal Imports Scheme, SEVS, the 25-year rule, or another approved category. Review the Department of Infrastructure’s vehicle imports page for comprehensive eligibility criteria.
2. Apply for a Vehicle Import Approval (VIA) via ROVER. ROVER is the government’s dedicated online portal for VIA applications. Begin by creating an account and verifying your identity using an Australian Government Digital ID, then specify your vehicle’s category, intended use, and reason for import before lodging your application.
3. Wait for approval before shipping. Standard applications typically take 15–20 business days to process, though this can be longer during busy periods or where submissions are incomplete. Submit your VIA application at least 4–6 weeks before your intended shipping departure date.
4. Arrange shipping and biosecurity compliance. It is your responsibility to ensure the vehicle is thoroughly cleaned and free of any biosecurity contaminants — both inside and out — before it reaches Australian shores. Consult the Department of Agriculture, Water and the Environment website for specific biosecurity requirements.
5. Lodge an Import Declaration with the Australian Border Force (ABF). Once your vehicle is en route to Australia, you must lodge an Import Declaration with the ABF. Customs clearance will not occur until you have produced a valid import approval and settled all applicable charges, including customs duty, GST, Luxury Car Tax (LCT), and any other relevant fees.
6. Arrange compliance modifications if required. Deliver the vehicle to a Registered Automotive Workshop (RAW) to have any modifications carried out to bring it into compliance with ADRs.
7. Register the vehicle with your state or territory transport authority once all federal requirements have been satisfied.

The principal government bodies overseeing vehicle imports in Australia are the Department of Infrastructure, Transport, Regional Development, Communications and the Arts (responsible for import approvals) and the Australian Border Force (ABF) (responsible for customs clearance).

What are the costs involved in importing a car to Australia?

Importing a vehicle to Australia adds several distinct layers of expense on top of the vehicle’s purchase price, which can collectively represent a substantial sum. It is vital to account for all of these before proceeding with an import. The financial outlay can be considerable, spanning shipping, customs charges, and any modification work required to achieve ADR compliance.

Customs duty is levied at 5% of the vehicle’s customs value, while GST applies at 10% of the total landed cost — encompassing the vehicle value, duty, and shipping charges. These figures reflect the position as of 2024; always confirm current rates with the Australian Border Force and the Australian Taxation Office (ATO).

A Luxury Car Tax (LCT) rate of 33% applies to vehicles whose LCT value exceeds the applicable threshold, and is charged only on the amount above that threshold. As of 2024, the LCT threshold for fuel-efficient vehicles stands at AUD $76,950 — a separate, lower threshold applies to standard vehicles. Visit the ATO website for current thresholds, which are revised annually.

It is also important to factor in costs before the vehicle even reaches the water. These can include asbestos removal and steam cleaning required to satisfy biosecurity conditions, as well as freight and marine insurance for transporting the vehicle to Australia. The VIA application fee is approximately AUD $100, while shipping costs depend on the vehicle’s size and point of origin — a typical range is AUD $3,000–$5,000. These are indicative figures as of 2024; obtain current quotes from freight agents and confirm approval fees directly through the ROVER portal.

Compliance modification costs at a Registered Automotive Workshop can vary widely depending on what changes are necessary — a recent vehicle from a country with comparable safety standards may require only minor work, while an older or unusual vehicle can involve substantial expenditure. Obtaining a written quotation from a RAW before committing to the import is strongly recommended. For context, importing a vehicle into the European Union typically attracts a 6.5% import duty plus VAT, making Australia’s duty rate broadly similar, though Australia’s compliance and modification requirements can add considerably to the overall cost.

How do I register a vehicle in Australia?

Vehicle registration in Australia is administered at the state and territory level, and the rules can differ considerably from one jurisdiction to another. Buyers should consult the transport department website for their state or territory to obtain complete and current information. Unlike countries that maintain a single national vehicle register, Australia’s registration system operates through eight separate authorities.

In general, buyers who purchase from a dealership within the same state where they reside need not concern themselves too greatly with the administrative side of registration — reputable dealers will gather all the necessary information and handle the registration formalities on the buyer’s behalf. Private purchasers and those importing vehicles from abroad, however, will need to manage registration themselves.

The steps to register a vehicle in Australia are:

1. Obtain a roadworthiness certificate (if required). Brand-new vehicles are ordinarily exempt from inspection. However, used vehicles or those more than five years old will typically need a safety check in accordance with state-specific requirements. Inspection fees generally fall in the range of approximately AUD $46 to $95. In New South Wales this certificate is known as a “pink slip”; in Victoria it is called a “roadworthy certificate.”
2. Obtain Compulsory Third Party (CTP) insurance. Once the vehicle passes inspection, CTP insurance must be secured. In certain states this is arranged independently before registration is completed; in others it is included as part of the registration fee (see the insurance section below for further detail).
3. Gather required documents. Regardless of state, you will need proof of purchase and suitable identification — a passport and valid driver’s licence will generally be accepted. You must also supply evidence of your local residential address.
4. Submit documents and pay fees. Attend your state transport authority in person or complete the process online, as permitted. For imported vehicles, you will additionally need to present your Vehicle Import Approval and any compliance documentation from a Registered Automotive Workshop.
5. Receive your registration label and plates. Once your application is approved and fees are settled, your vehicle is recorded on the state register and you will receive registration documentation and, where applicable, new number plates.

Key state registration authorities include Transport for NSW, VicRoads (Victoria), Department of Transport and Main Roads (Queensland), and Department of Transport (Western Australia). Registration is typically renewed on an annual basis, though some states permit shorter or longer registration periods.

What insurance do I need to drive legally in Australia?

Australia’s vehicle insurance framework operates on two distinct levels: the mandatory Compulsory Third Party (CTP) insurance layer and the optional — though highly advisable — comprehensive or third-party property cover. In some states, CTP premiums are collected as part of the registration fee rather than purchased separately. CTP is the minimum insurance required to legally use a vehicle on Australian roads, and it broadly covers personal injury liability arising from accidents in which you are at fault — though the precise scope differs between states.

CTP insurance is compulsory throughout Australia, but how it is administered varies by jurisdiction. In New South Wales it is marketed as a “Green Slip,” while in the Australian Capital Territory it is known as Motor Accident Injuries (MAI) Insurance. This cover addresses claims for injuries or deaths sustained by others as a result of a motor vehicle accident. Crucially, CTP does not extend to vehicle damage or property damage — it is a personal injury liability product only, which distinguishes it from the broader third-party liability insurance common in many other countries.

Because there is no federal CTP framework, the specifics depend entirely on the state or territory in which you are registered. In New South Wales, you select a Green Slip from one of several licensed private insurers before completing registration. In Victoria, CTP and registration are combined into a single payment administered through VicRoads. In Queensland, CTP premiums are collected alongside registration fees and are regulated by the Motor Accident Insurance Commission, with rates reviewed each quarter.

Beyond CTP, most vehicle owners choose to add either third-party property or comprehensive cover to ensure broader financial protection. The comprehensive insurance market in Australia is competitive and privately operated, covering damage to your own vehicle as well as damage you may cause to others’ property. As a new arrival, you may find that insurers do not recognise your overseas no-claims history, which can push premiums higher initially — it is worth raising this directly with prospective insurers, as individual policies vary in how they treat overseas driving records. The insurance market is regulated by the Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC).

What driving licence do I need in Australia as an expat?

The requirements for driving in Australia on a foreign licence depend on your visa status and the state or territory in which you are based. A valid overseas licence generally permits you to drive in Australia for as long as it remains current, or until you attain Australian permanent residency or citizenship — though state-specific rules come into effect once you establish yourself in a particular jurisdiction.

In the Northern Territory, drivers must convert to an Australian licence within 3 months; in New South Wales and Victoria, the conversion requirement applies after 6 months. You are restricted to driving only those classes of vehicle covered by your overseas licence, and you must carry it whenever you are behind the wheel. If your licence is not issued in English, you must also carry an approved translation or an International Driving Permit.

Whether you will need to sit theory or practical driving tests to obtain an Australian licence depends on the country that issued your overseas licence. Australia has bilateral licence-recognition arrangements with a number of nations — among them the United Kingdom, the United States, Canada, New Zealand, South Africa, and several European countries — which streamline the conversion process and remove the requirement for a full driving test. The specific countries recognised and the precise conversion process differ by state, so checking with the relevant transport authority is essential.

If your licence is written in a language other than English — such as Chinese, Japanese, Spanish, Korean, Arabic, or French — you must arrange for an English translation by a NAATI-accredited translator. An International Driving Permit (IDP), obtained from your home country before you depart, is widely recognised in Australia as a temporary credential and can be a practical interim measure during your first few weeks while a formal translation is arranged.

Licences are issued at the state and territory level. Key authorities include Service NSW, VicRoads, the Queensland Department of Transport and Main Roads, and their counterparts in each remaining state and territory.

How do I sell a car in Australia?

Selling a vehicle in Australia is a fairly uncomplicated process, but it does involve several important administrative steps that sellers must complete to avoid remaining legally responsible for the vehicle after it changes hands. The fundamental principle is that the registered owner recorded with the state transport authority continues to bear legal responsibility for the vehicle until the new owner formally completes a transfer of registration.

To sell a vehicle privately in Australia, follow these steps:

1. Prepare the vehicle. Check that registration is current and, if your state requires it, obtain a valid roadworthiness certificate. In some states this obligation falls on the seller; in others it is a matter for negotiation between buyer and seller.
2. Agree on a price and issue a written receipt. Prepare a receipt for the buyer that captures the vehicle details, the sale price, the date, and the full name and contact information of both parties.
3. Complete a registration transfer form. Both the buyer and seller must complete and sign the appropriate transfer documentation as required by their state or territory.
4. Notify your transport authority of the disposal. In South Australia, for instance, you no longer need a registration certificate when buying or selling a vehicle, and a notice of disposal or registration transfer can be lodged online. Most other states have an equivalent online notification mechanism. Completing this step promptly is critical — it removes your liability for any fines, accidents, or toll charges that may arise after the sale.
5. Cancel or transfer your insurance. Inform your comprehensive insurer that the vehicle has been sold. In most states, CTP insurance follows the vehicle rather than the individual owner, so a separate CTP cancellation is not usually required.

Regarding tax: the majority of private individuals selling a personally used vehicle will have no capital gains tax (CGT) exposure in Australia, since personal-use assets are generally CGT-exempt unless they were originally acquired for AUD $10,000 or more. However, where the vehicle has been used for income-generating activities — such as ride-sharing or business purposes — tax implications may arise. For advice tailored to your specific circumstances, consult the Australian Taxation Office (ATO) or a registered tax practitioner.

Are there any ongoing costs or obligations for vehicle ownership in Australia?

Running a vehicle in Australia comes with recurring costs and compliance responsibilities that every owner should account for in their budget. Unlike some countries that charge a separate annual “road tax” or “vehicle excise duty,” Australia typically incorporates most ongoing vehicle charges into the annual registration fee.

Registration costs differ by state and vehicle type, with annual expenses in major cities commonly falling in the range of AUD $700 to $1,500 or more. The registration fee comprises several components, including base administrative charges, motor vehicle tax, traffic improvement levies, and road safety contributions, alongside the CTP insurance component. Additional variables include vehicle-specific factors such as weight, engine capacity, cylinder count, and the owner’s location. These figures are as of 2025; verify current rates with your state transport authority.

For roadworthiness checks, Australia employs a periodic inspection model rather than continuous emissions monitoring. In New South Wales, for example, you must hold a valid CTP insurance policy and present your vehicle for a safety inspection — known as a “pink slip” — which is generally required each year for vehicles older than five years, and must be completed before registration can be renewed. Comparable periodic inspection schemes operate in other states under different names, such as the “roadworthy certificate” in Victoria. Vehicles that are newly purchased are typically exempt from inspections for a number of years following purchase.

In Victoria, registration pricing varies according to the risk classification of the area in which you live and whether the vehicle is a passenger car or a goods-carrying vehicle. In the Australian Capital Territory, the primary registration fee is now calculated on the basis of the vehicle’s CO₂ emissions rather than its weight — a change introduced in 2024. This emissions-linked pricing model may gain traction in other states as Australia’s New Vehicle Efficiency Standard takes full effect.

In addition to registration and inspection costs, you should allow in your budget for fuel (sold by the litre in Australia), routine servicing, and comprehensive insurance premiums. A useful benchmark is that drivers in Australian capital cities might spend approximately AUD $1,670 per year on registration, CTP insurance, and licence costs combined. (This is an indicative figure drawn from a Suncorp analysis; check with your state authority for up-to-date amounts.) Toll roads are a feature of travel in major cities including Sydney, Melbourne, and Brisbane, and almost all operate on a cashless electronic basis requiring an e-tag account — if you drive regularly in urban areas, these tolls should be factored into your ongoing transport budget.

Frequently asked questions

Do I need to be an Australian resident to buy a car in Australia?

No citizenship or residency status is required to purchase a vehicle in Australia, though the practical elements of registration and insurance function most smoothly when you are lawfully resident in the country. You will need a fixed local address in order to register the car. Students, skilled visa holders, and working holiday visa holders may all legally buy and register a vehicle, provided they can furnish the required documentation.

Can I drive in Australia on my overseas licence?

A valid foreign licence entitles you to drive in Australia for as long as it remains current, or until you obtain Australian permanent residency or citizenship. However, in the Northern Territory you must convert to an Australian licence within 3 months of settling there, and in New South Wales and Victoria the conversion obligation applies after 6 months. If your licence is not in English, you must carry either an approved translation or an International Driving Permit. Confirm the rules with the transport authority in whichever state or territory you are based.

Is it difficult to import a car I already own into Australia?

Importing a car to Australia in 2025 is a process that demands careful planning, thorough budgeting, and strict compliance with the law. Taking the time to understand your options and follow the correct procedure can save considerable time and expense. The primary requirement is securing a Vehicle Import Approval (VIA) before the vehicle is shipped. Under the Personal Imports Scheme, you must have owned and used the vehicle abroad for at least 12 months, and the scheme limits imports to one vehicle per person within any five-year period.

What is the PPSR and why does it matter when buying a used car?

The Personal Property Securities Register (PPSR), administered by the Australian Financial Security Authority, is the national database recording security interests over personal property, including motor vehicles. Conducting a PPSR search before purchasing any used car will tell you whether the vehicle is subject to outstanding finance, has been declared a write-off, or has been reported stolen. It is a low-cost precaution that can prevent significant financial harm. The current search fee is listed at ppsr.gov.au.

What is CTP insurance and is it enough coverage?

Compulsory Third Party (CTP) insurance is the minimum insurance cover required to legally drive on Australian roads. It covers your liability for injuries or deaths caused to others in a motor vehicle accident. It does not, however, cover damage to other vehicles or property, nor does it provide any cover for your own vehicle. Most drivers supplement CTP with either third-party property or comprehensive insurance for greater protection. The way CTP is arranged varies by state — in some it is bundled with registration, in others it is purchased separately through a licensed private insurer.

How much does it cost to import a car to Australia?

The total cost varies depending on the vehicle’s value, age, country of origin, and condition. As a general guide (as of 2024), you should budget for 5% customs duty on the customs value, 10% GST on the total landed cost, international shipping in the range of approximately AUD $3,000–$5,000, a VIA application fee of around AUD $50–$100, biosecurity cleaning costs, and any ADR compliance modification charges. Vehicles valued above the Luxury Car Tax threshold also attract a 33% LCT on the amount exceeding the threshold. Always verify current rates with the Australian Border Force and the ATO.

Do I need to pass a driving test to get an Australian licence?

Whether a theory or practical test is required depends on the country that issued your current licence. Australia has bilateral licence-recognition agreements with a number of countries that allow a simplified conversion process without a full driving test. Requirements also differ by state, so it is important to contact the licensing authority where you live — such as Service NSW, VicRoads, or the Queensland Department of Transport and Main Roads — for guidance that applies to your individual situation.

What happens if I sell a car and the buyer does not transfer the registration?

Until the new owner completes a formal registration transfer through the relevant state transport authority, you remain the recorded operator in the government’s system and may be held liable for traffic infringements, tolls, or other charges incurred after the sale. To protect yourself, submit a notice of disposal — or its equivalent — to your state transport authority immediately after completing the sale. Most states now make this possible online. Retain a copy of your sale receipt and evidence that you have submitted the disposal notification.